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Wednesday, 17 April 2013

Brent drops below $99; demand worries persist

Brent crude fell below $99 per barrel weighed
by the prospect of sluggish fuel demand in top consumers in the United States
and China and in addition to rising stockpiles of U.S. crude.

More bleak economic news came courtesy of the International Monetary Fund
(IMF), which trimmed projections for this year and next - implying limited
upside for oil demand
growth.

The North Sea benchmark has lost nearly 6 percent over the past five
sessions in a wider commodities rout triggered by data showing growth in China,
the world's second largest oil burner, had slowed unexpectedly in the first
three months of 2013.

The head of the International
Energy Agency, Maria van der Hoeven, said the oil price decline
was proof that the market was adequately supplied.

Brent crude shed $1 to $98.91 after sinking earlier to $98.80, the weakest
since July 2012. U.S. crude slipped $1.29 to $88.43.